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INVESTMENT INSIGHTS

Check Before You Invest : Nova Iron & Steel Ltd

BSE: 513566 NSE: NOVAIRNSTL ISIN: INE608C01026
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Nova Iron & Steel Ltd belong to?
Nova Iron & Steel Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Nova Iron & Steel Ltd a good quality company?
Nova Iron & Steel Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Nova Iron & Steel Ltd undervalued or overvalued?
Nova Iron & Steel Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Nova Iron & Steel Ltd a good buy now?
Nova Iron & Steel Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Nova Iron & Steel Ltd?
Nova Iron & Steel Ltd revenue growth is -26.1% for FY-2025 , which is below its 5 year CAGR of 51.5% , indicating slower growth.
Q.2 Gross Profit margin of Nova Iron & Steel Ltd?
Nova Iron & Steel Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.3% for FY-2025 , which is in line with its 5 year median of 0.3% , indicating stable margins.
Q.3 Operating Profit Margin of Nova Iron & Steel Ltd?
Nova Iron & Steel Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.39% for FY-2025 , which is in line with its 5 year median of 2.39% indicating stable margins.
Q.4 Net Profit Margin of Nova Iron & Steel Ltd?
Nova Iron & Steel Ltd Net Profit Margin is 35.69% for FY-2025 , is above with its 5 year median of -2.44%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 0.3 0.3
Operating Profit Margin 2.39 2.39
Net Profit Margin 35.69 -2.44
Q.5 Return on Asset of Nova Iron & Steel Ltd?
Nova Iron & Steel Ltd Return on Asset is 50.02%, which is above its 5 year historical median of -2.63%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Nova Iron & Steel Ltd?
Nova Iron & Steel Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Nova Iron & Steel Ltd?
Nova Iron & Steel Ltd Return on capital employed is 63.82% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Nova Iron & Steel Ltd?
Nova Iron & Steel Ltd Cash conversion cycle is -5 days, above its historical median of -5 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.4 1.35
ROE - -
ROCE 63.82 5.06
Cash Conversion Cycle -5 days -5 days
Q.9 Debt to Equity ratio of Nova Iron & Steel Ltd?
Nova Iron & Steel Ltd Debt-to-Equity ratio is -21.86 , which is lower with the industry average of 0.32 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Nova Iron & Steel Ltd?
Nova Iron & Steel Ltd Debt to cash flow from operations is 6.92 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nova Iron & Steel Ltd?
Promoters hold 44.16% of the Nova Iron & Steel Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Nova Iron & Steel Ltd vs industry peers?
Nova Iron & Steel Ltd revenue CAGR is 51.52% , compared to the industry median CAGR of 7.41% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 416.9 364.5
Gross Profit 1.3 11.6
Operating Profit 9.3 15
Net Profit 148.8 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.4 1.27
ROE - 8.12
ROCE 63.82 11.38
Cash Conversion Cycle (days) -5.3 72

Valuation & price assessment

Q.1 Stock return of Nova Iron & Steel Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 6.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 6.2% 6.2% 14% -14%
Q.3 Valuation ratios of Nova Iron & Steel Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 0.3 0.00 23.93
Price to Book -1.99 0.00 1.46
Price to Sales 0.1 0.26 0.74
EV to EBITDA 247.98 0.00 9.89

Check more companies

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2. Shyam Metalics&Ener
3. Gallantt Ispat
4. Sarda Energy&Min.
5. Godawari Power & Isp
6. Ratnamani Metals
7. Jindal Saw
8. Usha Martin
9. NMDC Steel
10. Jayaswal Neco Inds
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